Valuation of Open-Space Land Subject to an Enforceable Restriction
Cal. RTC § 426
California Statutes
(
a) Notwithstanding any provision of
Section to the contrary, if either the county, city, or nonprofit organization or the owner of land subject to contract, agreement, scenic restriction, or open-space easement has served notice of nonrenewal as provided in
Section 51091, 51245, or 51296.9 of the Government Code, and the county assessors shall, unless the parties shall have subsequently rescinded the contract pursuant to
Section or of the Government Code, value the land as provided in this section. (
b) If the owner of land serves notice of nonrenewal or the county, city, or nonprofit organization serves notice of nonrenewal and the owner fails to protest as provided in
Section 51091, 51245, or 51296.9 of the Government Code, subdivision (
c) shall apply immediately. If the county, city, or nonprofit organization serves notice of nonrenewal and the owner does protest as provided in
Section 51091, 51245, or of the Government Code, subdivision (
c) shall apply when less than six years remain until the termination of the period for which the land is enforceably restricted. (
c) Where any of the conditions in subdivision (
b) apply, the board or assessor in each year until the termination of the period for which the land is enforceably restricted shall do all of the following:
(1) Determine the value of the land pursuant to
Section 110.1. If the land is not subject to
Section 110.1 when the restriction expires, the value shall be determined pursuant to
Section as if it were free of contractual restriction. If the land will be subject to a use for which this code provides a special restricted assessment, the value shall be determined as if it were subject to the new restriction.
(2) Determine the value of the land by capitalization of income as provided in
Section and without regard to the existence of any of the conditions in subdivision (b).
(3) Subtract the value determined in paragraph (2) of subdivision (
c) by capitalization of income from the full value determined in paragraph (1).
(4) Using the rate announced by the board pursuant to paragraph (1) of subdivision (
b) of
Section 423, discount the amount obtained in paragraph (3) for the number of years remaining until the termination of the contract, agreement, scenic restriction, or open-space easement.
(5) Determine the value of the land by adding the value determined by capitalization of income as provided in paragraph (2) and the value obtained in paragraph (4).
(6) Apply the ratio prescribed in